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ira [324]
3 years ago
6

Sheffield Corp. uses the composite method and its composite rate is 7.5% per year, what entry should it make when plant assets t

hat originally cost $134000?
Business
1 answer:
muminat3 years ago
8 0

Answer:

$ 142 375

Explanation:

Thinking process:

Let the composite rate be given by the formula:

A = P (1+\frac{r}{n})^{nt}

where

A = amount after interest

\frac{r}{n} = interest rate

t = time

n = number of times (per year)

Therefore, this gives:

A =134 000 (1+\frac{0.75}{12})^{1}\\   = $ 142 375

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For the person to whom this utility function applies, a. her level of satisfaction will be enhanced equally by an increase in we
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Answer:

b. the more wealth she has, the less utility she gets from an additional dollar of wealth.

Explanation:

Utility is the satisfaction derived from a good. Total Utility is the total satisfaction from all units of a good. Marginal Utility is the additional satisfaction from an additional unit of a good.

The Law of Diminishing Marginal Utility states that : As consumer gets more & more of a good, the additional utility (satisfaction) from each successive unit keeps on declining. It implies that marginal utility decreases, & total utility increases at a decreasing rate.

Therefore : A person has more marginal utility (additional satisfaction) from an additional dollar, if he has less money (dollars). And, relatively less marginal utility from an additional dollar if he has more money (dollars).

Example : A rich person having millions of dollars would get less marginal utility (additional satisfaction) from gaining a single dollar, than a poor person having few dollars.  

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3 years ago
While the evidence suggests that over long periods of time that stocks will outperform bonds, individuals with a long-term inves
Scrat [10]

Answer:

Stocks and Bonds

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Rational behavior involves making rational choices that provide optimal levels of benefit or utility for the individual. People who make rational choices would rather choose bonds with lower risks and returns than stocks with higher risks and returns.

Explanation:

Every rational investor would prefer to reduce her risk exposure instead of increasing it.  Every investor is also aware that  investments with higher risks attract higher returns.  However, determining the certainty of the returns is difficult.

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3 years ago
Which two investment options would be best if you are 20 year old, just starting to save, and want to retire when you are 70? Co
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Answer:

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3 years ago
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The total of paul's taxable gifts, assuming he does not elect gift splitting with his spouse, subject to the unified transfer ta
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Gift splitting permits a married couple to merge their gift tax exemptions to help enhance the advantages of tax-free gifting.

<h3>What is a gift-splitting gift?</h3>

This method is not automatic, and the ability to split gifts requires that certain prerequisites are met, including the consent of both spouses on a pointed federal gift tax return.

Gift splitting allows a wedding couple to combine their gift tax exemptions to help enhance the advantages of tax-free gifting.

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